US Taxpayers are Gouged on Mass Transit Costs (user search)
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  US Taxpayers are Gouged on Mass Transit Costs (search mode)
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Author Topic: US Taxpayers are Gouged on Mass Transit Costs  (Read 2272 times)
bedstuy
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« on: November 25, 2012, 01:51:36 AM »

This absurd price tag is exactly what you get with labor unions and local machine politicans involved.   NY subway system used to be private, fairly efficient, and the most advanced in the world.  Then the NY city government came in and mandated that the price of the fare cannot rise above 5 cents to "help the poor people."  Over time with rising inflation that made these private subway operators unprofitable and they had to sell it to the NY city government which in turn raised the prices 10 and then 15 and then 20 cents which more than made up for inflation, which the private operators were not allowed to do, and then more (I wonder what happend to those poor people.)  Despite that this and continued price rises government-union controlled system continue to lose money and be one of the most inefficient systems in the world.  I use the NY subway system a lot and I have depressing debates about this with many of my friends.  I am for a steep rise in the fares to cover the real cost of operating the system and I will be glad to pay it.  My friends correctly point out that any price increase will be captured by the machine politicans plus unions and allow them to continue to operate this disaster with no improvement so there is no point. I had to concede their point and oppose a price increase but it is just sad.  Equally sad, with Obama's victory, I can see a smiliar story going to happen to the US healthcare system over the coming decades. 

If the US healthcare system was anywhere near as efficient as the NYC subway, that would be a massive improvement.
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bedstuy
YaBB God
*****
Posts: 4,526


Political Matrix
E: -1.16, S: -4.35

« Reply #1 on: November 25, 2012, 12:22:55 PM »

If the US healthcare system was anywhere near as efficient as the NYC subway, that would be a massive improvement.

I must admit I do not understand a lot about the health industry or how efficient it is.  I suspect given all the government regulations in the USA it most likely it is now. My personal experiences with the health care industry has been very positive but I am shielded from the cost as my insurance pay for almost all of it (that is a bad idea as I should have an incentive to rationalize my use of it.)  My experience using the MTA has been very negative, I see silly things on a daily basis that would be easily fixed if it was a for profit system.  I work in software in NYC and it is well know in the developer space in NYC that working for the MTA is a good route toward a below average pay for a programmer but you will pretty much do nothing everyday.  That is typical of union dominated MTA.  I am fine with keeping it government controlled because I do not think any private concern would touch it now unless we also roll back decades of regulations as well.  But get rid of the unions and keep them out.

The USA has great doctors and delivers very high quality care in many places.  But, there is a byzantine system of billing, insurance and regulation.  The system skews incentives towards over-providing services, not caring about costs and not paying attention to long-term health outcomes. 

You're right that NYC has a broken system of public employment.  It has certainly been abused by politicians and corrupt unions for a long time.  But, that doesn't mean the system should be totally private.  There needs to be large government investment in capital improvements and operating expenses.  That would be tricky with a completely private system.  Perhaps, MTA could contract out things like computer programming or even most of their salaried positions.  In any case, New York needs to stop being corrupt.
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